Bitcoin Breaks $98K, Bulls Eye $100K as Support Wanes

Bitcoin's (BTC) trading activity has recently highlighted a heightened participation ratio, signaling $95,000 as a key support area. This zone has consistently led to an upside on the charts after retests, confirming its role as a strong support level. At the time of writing, Bitcoin was valued at around $97,505 following marginal gains of +0.19%.

Following this rally, Bitcoin broke out from a symmetrical triangle on the charts, rising to the price point of $98,439.50. The symmetrical pattern typically resolves in the direction of the previous trend, which, in this case, was bullish. Initially, Bitcoin touched the lower boundary of the triangle and rebounded to break the upper boundary, suggesting a test of resistance around $99,000. If BTC breaks above this level, it could signal a continuation of the bullish trend, potentially challenging the $100,000-mark.

Over the past two weeks, net taker volume significantly fell, indicating a reduction in aggressive market entries, particularly short positions. This decline aligns with a consistently positive funding rate, suggesting that those holding long positions are willing to pay to keep them, likely in anticipation of higher prices. The price of Bitcoin underlined a stable trend within this period, with the crypto maintaining its levels around the $99k-level. This stability, coupled with reduced short selling and positive funding rates, may imply underlying strength in the market.

The uptrend in Open Interest hinted at increasing engagement despite the price stagnation, which could be seen as a buildup to a potential price breakout. Given these factors, the outlook for Bitcoin could be cautiously optimistic. If trader participation continues to increase without a corresponding hike in short selling, Bitcoin could potentially test higher resistance levels. Conversely, a sudden hike in short selling or a negative shift in funding rates could push the price south.